The Government has published new guidance concerning the proposed Apprenticeship Levy, which was announced in the 2015 Autumn Statement.

The levy will be introduced on 6 April 2017, and all employers with a wage bill of more than £3 million a year will be required to pay it.

For the purposes of the levy, an employer is defined as “someone who is a secondary contributor, with liability to pay Class 1 secondary National Insurance contributions (NICs) for their employees.” The levy will be charged at 0.5% of an employer’s annual wage bill.

Every employer will receive a monthly allowance of £1,250 to offset against the levy. Any unused allowance will be carried from one month to the next. The levy will be paid to HMRC through the Pay as You Earn system. Once a company has declared the levy to HMRC, it will be able to access funding for apprenticeships through a digital apprenticeship service account. Account registration will open in January 2017.

Apprenticeships and Skills Minister Robert Halfon said: “We need to make sure people of all ages and backgrounds have a chance to get on in life. Apprenticeships give young people — especially those from disadvantaged backgrounds — a ladder of opportunity.

“The Apprenticeship Levy is absolutely crucial to this. Our businesses can only grow and compete on the world stage if they have the right people, with the right skills. The Apprenticeship Levy will help create millions of opportunities for individuals and employers.”